Due to concerns of energy caused by Russia’s pressure on Europe, Germany decided to suspend its approval process for the Nord Stream 2 gas pipeline from Russia last week, so the electricity price hiked to EUR 331.37/MWh, the third-highest level in history.
Besides, France's state-owned power company EDF shut down four reactors after finding faults at a nuclear power station, accounting for 10% of nuclear capacity in France, which worsened the country’s power supply and caused French electricity prices to soar to the highest since 2009.
The prices of base metals, such as aluminum and zinc, were impacted by the power supply. During the small peak season at the end of the year, the surging power prices in Europe have driven the demand for new energy vehicles, packaging-used aluminum, aluminum sheet, strip, and foil, thereby supporting LME aluminum price to hike for two trading days in a row.
As of December 22, LME’s aluminum futures price rose by 2.56%, settling at US$2,824.5/ton.
LME aluminum risen for 2 consecutive days due to worrying supply
24 Dec 2021 16:12 reported by Joy Liu
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